a final check on the markets before we hand things over to "squawk on the street. we have been in the red all through the course of the morning. dow futures still indicated down by 125 points. nasdaq off by 38 s&p down by 13 that does it for us today. join us tomorrow. >> we'll be here. >> tom will be here. >> unless andrew comes running back >> thank you to all the veterans. >> thank you to the vets ♪ good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cram cramer, david faber at the new york stock exchange. stocks will take a breather at the open, dow futures down about 125 across after a record high across the board on friday fifth straight week of wins for the s&p. you got trade uncertainty and violence in hong kong top of mind europe is red. as is oil. ten year still near 195.

road map begins with this trade stumble for stocks some lingering china trade concerns >> plus, e-commerce boom alibaba's 24 hour shopping extravaganza breaks its single days record of more than 30 billion in sales and still climbing. >> and goldman facing an investigation over allegations of sexist credit decisions at app apple card stocks are set to open lower this morning on some dampened expectations surrounding u.s. china trade talks as well now as this escalating violence in hong kong meantime, the s&p is in the midst of a five week win streak for the first time since march 6 if you look at the nasdaq. it has been a nice ride over the past month. >> it is so amazing because the -- some of the bigger runs are companies you would expect no trade deal, we would unravel a lot of the companies that do a lot of business in china it continues to happen one thing i would say is that

people seem to care more about the fact that interest rates are going up than they care about what is going on in china. so you have got the industrials, just not that many industrials they are going up, the banks are tremendously -- really involved with the yield curve and those have been standouts. i marvel that apple is much more powerful than people realize there is a cycle going on. right now, a cycle in the semiconductors that is very unusual to see and it has to do with the 11. and it has to do with the genuine belief there is just much more upside to cell phones than we have seen. and it is -- it is incredible. >> you got two price target increases of nvidia today. ubs goes to 240. >> wasn't that amazing. >> the downgrade of qualcomm is based on the valuation of gap having closed. >> it is rather amazing. you look at nvidia, nvidia has rate tracing, gaming so excite,

take two had a good quarter. people felt it was convoluted. there is a bump of sky works people think it is going to report an upside i totally agree with that. micron, a kid at the air force academy that gave the presentation for micron and i wanted to say, buy, just buy because these companies are all moving up dramatically because of the cell phone cycle is so far ahead of itself. it is incredible >> what do you mean when you say so far ahead of itself >> it was supposed to be ho-hum. because now what we're really doing is waiting for 5g. now, china unveiled 5g and the companies that are involved with 5g, whether it be sky works, qualcomm, these are the leaders of this market qualcomm is an incredibly important stock for this market. stocks are on a roll, the cyclicals are on a roll, honeywell, and then jamie dimon,

i mean, it was right to have him -- timely, timely both between will frost and 60 minutes because the stock is done inconsiderably well you got some good stocks >> qualcomm a quick aside, a little over two years ago that broadcom made the hostile, low 80s, the stock is now well above that >> isn't that interesting? broadcom is higher than where it went. >> that's an interesting point >> in terms of that, it was 5g we misjudged 5g is when you read what korbo is saying, and qualcomm, 5g is dramatically bigger than 5g. it is a theme for us for ages and ages as one after another company -- we haven't seen the viacom -- i'm sorry, the verizon big rollout, we have a bunch of chinese companies. the european companies are going to roll it out it turned out to be this a

gigantic spur for the group. when you look at what worked for this period, semis, bank stocks, cyclicals. the bank stocks, a lot of them are waiting for some sort of phase one. where they can move in aggressively to -- by the way, that's part of the controversy the free traders who want more business done with china or is it the hard liners who don't really care for miss business in china and want to starve china so these are very -- i have not seen since i was the judge at the apprentice, two sides that are more at odds with each other. >> speaking of all of that, jim, it seems like we have gone from where is this going to be signed, right? where are we going to seal this thing, to whether there is something to be signed >> oh, my. you -- my friend larry kudlow is an optimist. he came out, he's my partner, and steve mnuchin, optimist, they're very aligned with some of the financial companies that would really benefit and some

people who like it, john thorton, kissinger, paulson, they want something open swartzman. and then there is the hard-line camp, the hard-line camp is appalled by what happened last week lite h lighthizer, hands tied by these. things can get convoluted in the december tariffs and they could go on. i think it very much limits the president's hand, what some people say, it is a negative for the talks what happened last week a setback. setback. >> okay. >> i do all that darn work >> so much enthusiasm, you bring to the table it just gone. >> my wife is furious. >> black hole over here, just gets sucked in. >> you're busy watching two of your teams lose. that's -- the giants and the jets lost to each other busy making calls. i'm making calls i don't get to do anything. >> make calls on a sunday. what's wrong with you? >> my wife said the same thing

what the hell is wrong with you? sickens me was so upset >> david will like alibaba record sales in the annual singles day event, the china-based e-commerce site more than 30 billion in sales within the first 18 hours as the 11th year they held the singles day event. the first hour, 13 billion, up 32% year on year we'll see how it closes. >> they're held to fairly high standards in terps of tms of th increases each year. they have a couple of hours left, i think, in terms of where they'll end up this started as a gimmick almost to say that. that has become the world's largest single shopping day by far in so many different markets for alibaba. i would argue, though, the more important news for the company, frankly, is the coming listing on the hong kong exchange, which we're going to learn more perhaps a day or so from now we learned a lot already from reporting in the journal, some other reporting as well around it we talked about it on friday

it could be as much as $15 billion in new equity as they raise as a result of the listing in hong kong the first time that the local market actually is given the opportunity to own the shares for a company that they know so well, one in which really in the u.s. we have very little dealing with on a daily basis. but singles day always interesting. five years ago since i was there for that singles day that long. jack ma was running the company in many ways joe tsai very much involved. but mr. ma excited the scene >> subamerican companies have been -- have sold -- pvh, single day. estee lauder, that could be good estee lauder has been hurt by hong kong. by the way, hong kong, there are people -- the administration doesn't talk about hong kong you would think it would be a natural to say, look, they're imploding over there they don't give you that heads

up. >> no. >> what is that about? why don't you give you a heads up why don't they say how do we make deals with companies crushing dissidents? they never say that. >> pompeo has been pretty vocal. >> he has been >> he's been the voice the video he, worst week day of violence, pretty much in the five months of demonstrations you had a protester shot in the abdomen. at point blank range another man doused in gasoline >> really incredible there is -- i was with someone the other day, who said didn't they see it coming this was all planned all of whatever is going on in hong kong planned by the prc for a long time. but this is now active resistance i don't think chinese know how to curb it they don't what are they going to do? they don't want tiananmen square.

>> hong kong retail sales numbers coming in down 20 plus ralph lauren on the call last week shaves off tens of millions, just -- >> impacting the parks >> yes >> without a doubt there is an impact. >> right >> not stopping alibaba from listing in hong kong >> saudi arabia, they have their -- basically their largest -- the refinery blows up and it doesn't stop them let's issue equity no matter what how desperate is -- is alibaba desperate? >> no, no. >> is aramco desperate >> this has been a long time in coming their quarter was impacted as you well know by the halt or the lack of production as a result of the attacks. >> cash flow, whoo >> and really interesting to see what the valuation of the companies ends up with, 2 trillion they were hoping for. >> no.

we have to talk about wework too in terms of deals that we were so fortunate to -- bullets dodged i wasn't on that plane, david, to -- >> you weren't on that plane no >> wanted me to go asked me to go. >> you did good for you. >> there is a ton of news including all of that. also the apple card facing accusations of gender discrimination we'll weigh in on that premarket here we'll get to facebook, uber, tesla, boeing, downgrade of cisco. a lot today. don't go anywhere. whether your beauty routine is 3 steps... or 57, make nature's bounty hair skin and nails step one.

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apple card is under scrutiny today. the new york department of financial services launching an investigation into goldman's credit card practices after tech entrepreneur david hine mire accuses the banks apple card algorithm of discriminating against women when it comes to determining credit card limits he says apple card provided hmm a limit 20 times higher than that of his wife goldman is denying that gender plays a role in apple card issuance another story, reuters argues their investor day they're going to announce a wider range of metrics to watch beyond revenue. >> i think that when you look at this issue with the credit card, it is hard, because goldman values each person it is not -- they don't look at the joint. perhaps you say they shouldn't

do that. but goldman thought and apple wanted the idea everybody should have their own rate, which, by the way, is not necessarily a bad thing. 50% of marriages end in divorce. you would like a woman to be able to have her own -- a spouse, whatever, to have their own rate i question this story because how do you have an algorithm that necessarily distinguishes you can't tell woman or man. but i also recognize that the wider range story, i'm not buying that one. i think that a lot of what they're doing with the credit card is very positive. i know a lot of their different divisions is doing quite well. i don't know i mean, the goldman that i'm talking to is not the goldman that reuters is talking to. >> take a moment here to appreciate more members of the u.s. armed forces coming in for this veterans day. you'll see this throughout the morning. we'll get a moment of silence in a few minutes. but it is a special day. veterans day is always a great opportunity. as you proved on friday night.

>> well, i just think over and over again, people are saying now, i want to hire these people not because i want to give them a handout, i want them because numbers go higher. that's a new narrative i think general mattis -- a commercial this weekend, people feel these are damaged goods not getting that read at all the read i get, if you hire them, you do better. sometimes you have to retrain because the skills they have may not be necessarily applicable. the people i met at the air force academy, there isn't a soul i wouldn't hire i met a lot of people. i would hire every single one of them. >> i remember doing a story for the journal in the '90s, it was an issue, getting reintroduced to the workforce >> if you're american airlines, delta, united, you just -- you got 4,000 people there you recruit them in a second these are people who just would do it right.

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on this veterans day, the nyse is about to observe a moment of silence. the history of the day is very interesting. the 11th hour of the 11th day of the 11 month is the time in which hostilities of world war i came to an end. >> a lot of what happened that day led to unfortunately to the -- the -- well, to the nazis, the rise of the third reich. that was viewed as being a sellout by certain people in germany when meanwhile history says it wasn't

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to the opening bell. five minute until we get started with trading for the week. what is the mad dash today >> piper goes by the whole cisco, lack of catalyst, risk to estimates, 5g was a catalyst i think that security is a catalyst stock is down very big inexpensive. travel trust is better we have a very bad short fall from ariftia networks, a competitor of cisco. and i think a lot of people are anxious to flee the stock because of problems with data center i don't think the issue is data center i think there is just -- no catalyst and i think that when i say no catalyst, it is an inexpensive test stock i'm not going to just with a broad bush say, listen, they're going to blow it i think they already -- >> would be a catalyst for a move higher. >> a lot of cash gigantic buyback, big boost in dividend maybe a realization that much of

their business has become subscription and not just one off. a realization that the new cycle, which they have refreshed, is big. and also just because i think chuck is dingoing a good job. it should not be related to jay and what happened to ariftia networks one is a box product and -- i was going to talk to them when i go to sales force next week. i lack a reason to say, you know what, we got to buy it i think that's important i wish i had one i don't. so i point it out as being an issue. >> i did remind some people on twitter, goldman cut it october 10 driven by expectations, largent prize spe enterprise spending. it will continue to weaken. >> some of the big stocks are not saying that. you're not hearing that from vm

ware now, service now. you've got some pretty good action in some of the cloud stocks in which the best is sales force. 161. that's ahead of dreamwork -- of -- here's the problem dream force is a reason that people buy the stock and so it -- they buy it ahead. >> yeah. >> they buy it ahead when it happens, it has been a catalyst to sell so just be aware that people -- they don't own it, they trade it and i think that they shouldn't, i think marc benioff is doing a great job. some feel all he cares about now is social justice. business is the greatest force of change. you know, they got to keep blocking there it is -- i almost bought a subscription to sales force. i didn't have anything to do with it. >> that good. >> the home reason only reason , he's a patriot fan. >> stock is in range for quite some time.

>> you're into that range the s thesis, aren't you >> you know i'm not. they haven't done much marc was here telling us the incredible returns over a long period of time what i'm wondering is do you think this recent move up from the 140 to 160 is sustainable? or to your point just moving up ahead of the -- >> i thought adobe did a great job on their call. said business was good for a couple of days nobody cared. adobe is starting to do okay they're a gigantic buyback sales force doesn't. i think dream force is doing to be a focus on celebration of business, and it is exciting and that should translate. a couple of years ago, they were about to buy twitter and marc fell down on the way to the meeting. and ripped his leg up. and they said, big man down. and he thought that was a -- >> a sign. >> yeah, thought it was a sign and didn't proceed with the deal but, of course, phil hated the deal too. >> shareholders weren't happy about it.

>> we talked about it. >> by the way, twitter is where they were hoping to buy it twitter stock has been a disappointment >> it has. >> it has. interesting social media stories, facebook is going to start hiding likes this week on instagram. something that dorsey i think applauded today or over the weekend. >> well, dorsey is hiding earnings or maybe they don't have them. >> as in they don't have enough earnings >> they underinvested is what i think happened here. >> this is the focus of the call last week. >> i think they underinvested. i think you have to -- that business, you invest every second twitter has not spent the money. that's why they had technical issues this quarter that are going to hurt the earnings i don't care for the stock as much as i thought at this point. that quarter was really not great. >> that's why evercore put a sell on it last week. >> i thought that was timely. >> to the opening bell here on this veterans day. a look at the s&p 500, the cnbc

real time exchange at the big board, the u.s. marine corps, coast guard, air force, navy and army, and at the nasdaq, the america israel friendship league. >> the air force academy from 1959 it is beautiful. in a place, you're from colorado, 7,200 feet, hard for some of us to breathe, but it is the new academy. and it has got a great kind of -- a bit more of a laid back feel not top gun. that's, like, the movie. but, wow it is -- they understand what the vets have done and there is a lot of reverence. >> jim, uber had a lot of news over the last 24 hours we'll hear what khosrowshahi told axios we're told that kalyn sold a fifth of his stake 20 million shares. >> isn't that interesting? remember the seller of facebook,

peter thiel, very smart investor, a lot of people talk to who say this is the time to get into uber. you have to get in right with the weakness i think that if you feel that way, lyft was the one that had the good quarter honestly, i was dealing -- you'll love this a lot of people feel that to go against door dash is the dumbest thing in the world door dash is playing with guess whose money? >> softbank money. vision fund money. >> what does that mean does that mean you're allowed to lose is that like carte blanche is that me when i decided i'm going to use a lot of credit cards and hope that you get more credit cards. >> you would hope not. you would hope not there is certainly some questions as to where the guardrails are >> guardrails. >> with some of the investments that -- or the money that softbank through its vision fund has given companies that are spending a great deal to expand quickly, to grow quickly, and are not worried about making

money. >> this crazy -- >> which is okay in this huge growth phase they have and softbank is fine with that mas masa is fine with that opportunity at the end of the road is a significant infoenough one. fe felt that with wework now softbank owns wework. >> he said maybe he would -- he was maybe misjudged. >> he did. said last week during the disappointing softbank earnings. >> i think he'll misjudge -- >> the money has come from softbank and the vision fund not just the vision fund. >> i think that uber has to get out of uber eats >> they do really >> dara has to change his mind >> really? >> it is not a business. they get out of it, the stock goes to 50 stay in that business, keep losing money >> almost doubles? >> did you read the call how bad uber eats was? >> it wasn't good. i did. i read it. i know only 15% of their market is --

>> but they are going to have another leg down this business has gotten even harder ever since that -- i have to tell you, caviar was bought by door dash. i think that they have decided door dash that they can wipe out everybody. last man standing is their goal. last man standing. and grubhub, remember grubhub talked about the promiscuse diner and that was not a diner in queens. i was googling, looking at the yelp review. it is how people care about delivery which is nothing there is no loyalty. >> one of the oddest corporate communications -- >> i love the back story. >> it was great. >> that's what we're going with. we love it we're all in. >> i flew in from l.a., my arms are tired. it was like a -- a -- >> i know cal nick owns a lot of stock behind this.

interesting to get rid of 20 million shares at the lows. >> yeah. >> well, what is his basis >> of course >> still, it is money. >> that is so profound. >> thank you >> holy cow. >> only here at "squawk on the street." >> i have a keen sense for the obvious. >> i think that's rather remarkable. >> i like to show it sometimes >> david mentions wework jamie dimon was not asked about wework last night on "60 minute oz s" but lesley stahl got him to talk about executive pay. >> you were paid $31 million last year. too high >> i have nothing to do with it. >> you could return some of it. >> i could is that going to solve any of the problems >> i don't know. >> i'm going to leave it to the board. not me, not the press. >> you answered all my questions, but this one you're fending off. let me ask in a general way. should executive pay in this country be curbed?

>> what does that mean >> cut back. should there be a way to say we're not going to have such a spread between our workers and the guy at the top >> you say something like that, you got to say how are you going to do it, what does it make sense? i think you use the taxes to do that like a negative income tax for lower paid people. >> he talked about whether or not he thought about running for president, obviously a lot of coverage of detroit. on pace, it is the board's decision. >> this is the -- some is something dennis muilenburg said in front of congress and boy, did he ever pull back on that, we're at a crisis, that was wrong. i -- this is what they always say. you know board comp. a guy on the comp committee, what does he do? for x, y, z that guy is making x, we have to give our guy x and so then it becomes just a

self-fulfilling prophecy i wish that they had interviewed brian moynihan they have so many people at bank of america who are paid six figures. which is a good living but, yeah, compensation is a little crazy >> yes and they do have people on the comp committee who are -- and/or not necessarily on every board, but certainly there is cross pollen nation in terms of ceos on the board it is in their interest to make sure it is important that the metric used for executive comp are the right ones that has been a focus of activist investors are we focused as shareholders -- how should you judge how well management has done simply on eps? no most likely not. return on invest to capital. all sorts of different met ric s

metrics. >> why didn't -- >> the numbers are extraordinarily high. >> why didn't jamie say one thing i've done is i tripled the value of the stock so shareholders have benefited why did he do that lesley stahl saying -- here is what jamie -- like i'm telling jamie what to do -- but would have been smart, shareholders have been rewarded and the board rewarded me. i have created a lot of wealth for people in the stock. or my team has. team stuff but he didn't do that. >> you're asking him to say i'm worth it. >> exactly right i would have said that, i would have said, look, i know you think that i may be overpaid, but i do point out that others have shared in the wealth. i bought back stock at the right level, i managed, got the earnings to be good. and he didn't make a good case for himself. and he didn't. he didn't. i was -- >> listen 40r, 40 years ago, weo

the average between the average worker's pay >> that senator warren, she talks a lot about some -- >> the stock compensation is given and/or the awards given to senior management, they mackke a lot of the money there straight cash. >> he got one thing right, he said, look, i would have paid more taxes that's something people don't like to say. he should have said, okay, look, here's what happens in the stock market there are people who make a lot of money who don't do well for shareholders and ones that do well. it should be factored in and why he left that out, i'm not quite sure maybe he had it and it got cut maybe he had just a kind of a moment he was thinking about other things but he should have said that and i always say that, i was about to say i like him. >> you're right.

missed opportunity he might have said it. >> we don't know look, he's made more money than -- is it the problem that the executives paid a lot who don't make money for shareholders that's the deal. that's what he should have said. so i guess i got to go to work for him too. >> you're going to be busy being -- >> i got the fed chair, treasury secretary, now jamie dimon's adviser. i'm busy. >> you always are. even on sundays reading -- >> just jammed >> jammed. >> i got to try to get tesla to 400. >> jeffries thinks it is worth it they go 300 to 400, saying margins are consistent with sustained profitability. >> bears, listen to me you're right, the blah, blah, blah boy, do they build cars fast in china. it is all a sham, all a sham david -- >> yes looking at texts it is all a sham, i heard you. >> unless it is open text, i

don't really care. >> sometimes there is important things in those. that was not one of them. >> you're not allowed to say anything bears hate saying anything -- i don't like the balance sheet i am amazed they got the cars off to china very quickly. there i am looking to ford what has ford done for you lately >> not much. >> no. >> how about -- >> how about what? >> chevy truck. >> chevy truck why did you say it like that >> i watch millions of commercials while i'm watching football particularly upsets -- chevy truck. >> can pull a lot. payload. >> do you know what a torque is? >> yeah, a little. >> you know torque let's go to tjmaxx they have a lot of torque there. >> ross stores upgraded by rbc we'll go by ross stores. they have great umbrellas. >> speaking of retail, walgreens, the stock is up on this bloomberg story that hit

earlier this morning saying that kkr had made a formal approach to the company to at least explore the idea of a buyout of a -- by the way, kkr, formal approach, not like it is an solicited -- it would be with the cooperation of the largest shareholder, the company's ceo, bloomberg had previously last week reported on this as a possibility or something being looked at. but you can see the stock is up over 5% on this. a lot of questions here. starting with just the -- the -- you look at capital that would be necessary, got 16.8 billion in debt, $53 billion market value going into this move up. but throw a premium on it, where do you end up, low 60s, mid-60s, different analysts can mack a guess where you would need to make shareholders happy with an

all cash buyout. you would raise an additional -- speaking of people around, another 10, 12 billion in equity kkr would not be alone in this in any way, shape or form. do you have sovereign wealth funds that might be interested other pools of capital as opposed to lbo funds it is a heavy lift it would be the largest lbo maybe of all time. and by the way, it would be putting debt on a company and sort of -- and preventing flexibility, jim, at a particular time when a lot of people say walgreens needs transformation the competitor cvs which transformed itself what has walgreens really done >> they had -- >> they own a stake in amerisource. >> thanks for nothing. the front end here versus cvs, where you shop, for nondrugs,

minus 1.2. minus 3.8 february versus the front end of cvs .4 .6 2.9, .4. the front end is something that cvs tried to diversify from and it is still doing better than what -- turned out to be a good deal merlot, larry merlo turned into a healthcare company you're going to load up walgreens against amazon right in the death star's purview and there is no force field. >> i think you're kind of asking, others are, what is the strategy >> nobody knows. >> there you go. so now placina would like to take the company private, maybe. i haven't spoken to him specifically about that. they had partnered, boots alliance, which he ran, partnered with kkr in the past

but that deal was not in the green until they did the walgreens deal that sort of took kkr from what had not been a particularly good investment to a better one so, you know, you have a lot of questions here >> more questions than answers >> doesn't add up to me. >> i think xerox has a better chance >> that's saying something for him. >> yeah. >> let's get an update on alibaba. >> the numbers behind me, that gross merchandising figure continues to tick up now, standing above $36 billion the day got off to a rapid start, about 22 hours ago, in the first hour alone, a figure of $12 billion much of that is driven by chinese consumers love for imported goods, which usually very expensive there is a lot of talk coming in the singles day, whether this u.s. china trade spat would have

affected chinese consumers' appetite for u.s. goods, anti-american sentiment, that hasn't been the case at all. american brands faring very well the likes of nike and also apple, the iphone pro and pro max are among some of the top new items on sale and being sold here to chinese consumers as well another big story going on here is the push by alibaba and others of chinese e-commerce firms to smaller -- all these large metropolises these companies are facing a new battleground in which they see a new leg of growth and smaller cities those consumers from those cities are purchasing more now as well. that's been a big push here when it comes to the growth on singles day as well. we can read a little bit through to the chaeinese consumer this is one data point a lot of concern about slowdown in the chinese economy and whether that would hit spending.

right now it doesn't look that way. it looks like chinese consumer spending seems to be pretty robust and they continue to flock online as well analysts i spoke to earlier, they suggested that that final figure behind me will hit about $37 billion. that midnight. that is just an hour and 15 minutes away with that time left, and just under a billion dollars left to go it looks like alibaba could get there. i'll be here at midnight to bring you that final figure as those numbers keep ticking up. back to you. >> all right, fascinating countdown clock there. thank you. to seema mody and see what's moving with the dow down 100. >> we're lower this monday morning, following five weeks of gains for the s&p 500. down half a percent for the major indices here in the u.s. dow trading at 27,581. it is important to know this negative session or tone started overseas hong kong protesting one of its worst or most violent days since june and markets did respond. hong kong etf, shanghai

composite down back here in the u.s., the conversation around the internal rotation we're seeing into cyclical stocks. look at the industrials. they hit a new high on friday after goldman sachs raised the price target on shares of caterpillar. a lot of this having to do with the prospect of a limited trade truce deal and the move in bond yields, that is reinforcing this move we're seeing in strindustrials. analysts say earnings from deere, that will confirm whether the secretator is bottoming out they have cut production in 2019 the stock is trading near all time highs not on the fundamental story but on trade optimism. let's move on to the consumer earnings this week more details on the health of the consumer we have cvs, walmart on thursday, jcpenney on friday on the economic front, retail sales for the month of october, plus inflation that data point will be very much in focus.

speaking of the consumer, online travel continues to get -- trade under pressure oppenheimer cutting its price target and downgrading shares of expedia. this is the fifth downgrade for expedia after reporting earnings last week. a lot of concern about google's new algorithm, pushing down search engine results, which made it harder for expedia and trip adviser to generate more free traffic that put more pressure on the names to increase marketing costs. expedia down about 12% so far this year. back to you. >> seema, thank you very much. dow down 85. the biggest drop for s&p in more than a month, october 8th. back in a moment so what are you working on?

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or tdameritrade.com/learn. ♪ by the way, she's the it wasnext mozart.g day. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what.

it's unbelievable what you can do in the prius. toyota let's go places. about 90% of the s&p has reported earnings, but you look back at the quarter, and the blowup in online travel is truly astounding there's a one-week look at expedia and booking holdings, unable to hold on to any gains, at least today dow is down 94

"stock trading" with jim in just a moment ♪

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let's get to jim and "stock trading. this is very light volume so i don't want to say anything that can even move anything and kia

has a great note about target raising its price target from 120 to 130 and one of the themes, bed bat is pulling back everywhere bed bath has been a very good stock since the new ceo comes in, top guy at target, so target i think is -- i'm going to say it i think it's a great place for the holidays >> wouldn't surprise many people. >> ryan cornell is doing a fabulous job. >> tonight on "mad." >> norwegian cruise line, one that's really pulled ahead of everybody. people are spell spending furiously and then jim foster, his stock is not talked about enough, the huge amount of money going into biotech that become wonder drugs just incredible and they are happening. i thought, by the way, jamie dimon, got cancer, how he handled it and inspirational he's an inspirational figure should have talked about how well he's done. >> a powerful moment where he described having to tell his -- tell his wife. didn't want to tell his parents.

very regular guy for a billionaire. billionaire chop, chop i mean, right. you know, boom. >> he's from queens. >> he's from queens. had a little queens accent at a certain point. my wife is from flushing, and i detect that kind of talk from him. i'm from philadelphia. went to my high school reunion and everybody here talks horribly and i said what do you think you sound like >> jim, we'll see you tonight. "mad money" at 6:00 p.m. we'll stay on top of alibaba as we're off e itthinial lows dow is down 92

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mention the record highs on friday. >> that's exactly where our road maps start stocks slumping as trade continues continue to loom for investors. >> plus the world's largest online shopping event alibaba's singles day hitting records with an hour still to go. the vape debate heats up and the president will meet with vaping industry officials months after calling for the ban of flavored e-cigs we'll bring you the latest. >> trade uncertainty gripping market this morning as they take a leg lower from record territory. ubs director of floor operations art cashin joins us this morning. a holiday, bond markets are closed fact that we do seem to be taking a breather here with equities, makes sense? >> it does, because what we're dealing with here is the denial of the tariff rollback you've got a little sense of that on friday it was reconfirmed over the weekend, and -- and it hit the chinese markets, along with the

hong kong demonstrations, but primarily it hit the chinese markets on the tariff deal, and -- and they got hit severely, and we're just playing a little catchup i think they are going to try to circle the wagons here and see if they can tiptoe back up maybe and, you know, get -- or at least cut the losses a little bit further. >> what do you think is priced in in the market right now in terms of a so-called phase one trade deal >> i think it's priced in assuming that we're going to get near there tariffs remain a bit of an open question you know i mean, they could always blow up at the last month, you know all you need is one helicopter press conference, and everything can change, so -- but i think it's probably 60% priced in already, you know.

you've got a confirmation. you get a couple hundred death points lower on the dow. >> earnings season almost over, better than expected how does that set us up for the rest of the year and into next >> it is better than expected, but you've got to take that with a grain of salt. more companies are edging out the estimates, but they are edging them out in a very minimal fashion, so we're not moving, so there are rising questions about the fourth quarter, but the guidance has not been terribly bad so companies are not pre-excusing what's going on. we'll hold it up together. a light volume day as you say, the bond market is closed, and i don't see much of anything happening. >> one of the other things i know you focus on is geopolitics. obviously you had protests and violence in hong kong over the weekend. turkey has also been a flashpoint for weeks now supposed to have erdogan from turkey coming to meet with president trump this week as

well what are you watching on that front? >> i don't think anything explosive going to come out of that, you know but there's still a lot of pushback that the president may have made it easier for erdogan to move into syria, you know, base cliff giving him the go-ahead, so i think you'll probably hear democratic criticism more than anything coming out of either trump or erdogan and where they are going to go. so, you know, the impeachment is not a factor yet the bloomberg candidacy may have a very, very short life, and a short shelf life, and we'll see because when he announced, you got a lot of publicity and talk shows on sunday, things were kind of not taking the candidacy too seriously, so we don't know where we're going to go from there. >> he hasn't announced yet to be fair. >> he hasn't officially announced. >> right. >> but filing in alabama.

>> yes. >> right >> all right in terms of key levels to watch here, especially since we're coming off of record closes on friday >> yeah, no. i -- i think the pullback will be contained unless there is something new on the trade deal. so i think what you want to watch is this morning's lows do you stay above them and that will give the bulls a little initiative if you were to weaken again and you take out the morning lows, then that could mean we'd be in a multi-day selloff so we'll see. >> all right. >> art cashin, thanks for joining us here at post 9. >> my pleasure. >> all right meantime, it is the biggest single shopping day on the planet coming to a close in about an hour. talking about alibaba's singles day. arjun kharpal brings us the latest tally. >> reporter: that's right. just under under an hour to go that figure now over $36.5

billion. in the first hour here in china, alibaba smashed through about $12 billion so those sales were racking up very quickly and continue to march on a lot of that growth has been driven by the chinese consumer's love for a lot of imported brands thereto was a lot of talk coming into the singles day whether the u.s./china trade spat could cause anti-american brand sentiment from chinese consumers. that hasn't been the case at all. chinese consumers have bought a lot of american brands which are faring well, nike and iphone 11 pro and pro max have been among the top products bought by chinese consumers. you're also seeing more and more consumers from some of the smaller chinese cities outside the likes of beijing and shanghai coming on board and spending more with alibaba these lower tier cities are somewhat of a battleground for the company and next level of growth with the lower tier consumers. on top of that, you've got the

shopping festival evolving beyond shopping. i mean this, screen is a live streaming screen where influencers go online and talk about products and consumers are watching this on their phone and buying within the stream they different to perhaps how we shop on an amazon for example, as well are and many will be looking at this to look at perhaps what it tells us about the chinese consumption story. it's not an indicator we can take alone because it doesn't tell us the whole picture this along with some of the positive earnings growth we've seen from the likes of alibaba and jd.com over the past couple of quarters gives us a sense of positivity around the chinese consumption story, that these things continue to grow and are flocking online. analyst are expecting perhaps a figure around $37 billion, and we're already over $36.5 billion. not long to go so that figure looks well inside. however, it will represent for a bit of a slower growth rate in terms of gmv and perhaps as this festival matures and also alibaba faces increasing competition in the domestic market for now, guys, back to you >> arjun, that slower growth

rate may be one reason why you're seeing shares of alibaba under pressure this morning. one of the other things that's been so closely watched is the popularity of u.s. brands in china. what has the selling activity so far on singles day told us about how chinese consumers are receiving american products? >> well, actually american brands, the number two most bought brands at the moment. japan, brands from japan are number one and also on jd.com the u.s. ranked first so chinese consumers are still loving the u.s. brand and loving the likes of apple here on singles day given some of the discounting around that for retailers, but also apparel is doing quite well i mentioned nike as well i spoke to an analyst who said that apparel and jewelry from american brands are are being bought by chinese consumers, so there's still a lot of love for these brand. if you look just walking around some of these big cities, you see the kind of designer brands, some of the young chinese people

are wearing, still loving the brands and american brands are still very much front and center for them. >> the numbers are compelling. we're going to keep an eye on that the next hour good to have your eyes and ears on the ground. the uber ceo telling hbo saying that the murder of jamal khashoggi was a mistake by the saudi government take a listen. >> i think that that government said that they made a mistake. >> they made a mistake and somebody is dead. >> it's a serious mistake. we've made mistakes, too, right, with self-driving and we stopped driving and we're recovering from that mistake, so i think that people make mistakes. it doesn't mean that they can never be forgiven. i think they have taken it seriously. >> he's sense issued a statement saying there's no forgiving or forgetting what happened to jamal khashoggi. as i said after the interview, i said something in the moment i don't believe. our investors have long known my views here, and i'm sorry i was

not as clear on axios. >> well, 45 billion of the roughly 100 billion in division fund, the single largest investor in uber is from the saudis, so i'm sure a lot goes through his head when he tries to respond to that question. >> and it seeks to the interconnectedness with other companies right now where they are getting investing dollars and where they are selling their products in terms of walking a fine line. we talk about a lot perchina is concerned, especially in the midst of all the hong kong protests and the blowback on brands due to people speaking out, you know, the way geography is labeled, et cetera, but increasingly you're seeing the skepticism and this type of look at the relationship with saudi arabia as well i mean, the stuff with the twitter spies in saudi arabia last week is a good example, too, so just speaks to the fine line that many ceos have to walk yeah. >> not to mention the 100-page prospectus we got.

>> that, too. >> with insights into long-term oil demand and their relative size, valuation what we thought it would be four years ago. >> yeah, i mean, it's an enormous company, as we've said many times, because the bankers involved or those who are pitching have been telling me this for some time it's like taking a country public because that's what it is i mean, it's not just a run of the mill oil and gas company. >> when we come back this morning. the president tweeting that he'll meet with vape industry officials as the debate on e-cigarettes continues to heat up plus, as we said, the world's most profitable company saudi aramco released details ahead of its highly anticipated ipo we'll talk to a former executive when we come back. 's why i take, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium. - [spokesman] if you've tried colleg(group cheering)shed, snhu lets you transfer up to 90 credits

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president trump tweeting earlier today he'll meet with vaping officials in the coming days, two months after announcing the white house plan to ban flavored e-cigarettes our meg terrell joins us with the latest this morning. good morning, meg. >> reporter: good morning, carl. the president in his tweet cited both concerns about children's health and safety but also about jobs, and folks say that it looks like the trump administration may be potentially softening its stance on that promised flavor ban on e-cigarettes they put out there two months, exempting both menthol and vape shops which would be seen as victory by pro-vaping groups who held a rally over the white house and who warned there could be a political cost to the president if such a strong ban were

enforced >> in a state like michigan or new mexico being targeted by the president, that in many of these states, the number of vape vapors who feel passionate about this and say this will be their vote-moving issue, the election could be swayed one way or the other by hundreds of thousands of people in individual states that use these products. >> reporter: and, of course, this comes after last week we got new data showing how many high schoolers are still using e-cigarettes, now up to one in four we spoke with former fda commissioner dr. scott gotlieb who cited those data and said this. >> at this point you really need to look at potentially pulling all of those products after the market because i'm not sure if they have enough public health redeeming value. >> you're not just talking about flavored, but anything out there. >> all of them juul in particular, you can't treat similarly situated products under a different situation. >> talking about potentially

pulling juul completely off the market we've reached out to juul and haven't heard back meanwhile, of course, more news last week that the cdc may be honing in on a potential cull prosecute involved in all the illnesses and deaths related to vaping which have topped 2,000 illnesses and 49 deaths. they have honing in on vite men e acetate so a lot of news swirling and maybe more this week from the trump administration. >> thanks for that setup our meg terrell in new york. despite the current outlook for vaping, our next guest cites an $85 billion market opportunity. vivian azer specializes in cannabis and tobacco out with a new report, disruption junction. great to have you back, viv. good morning. >> good to see you how are you reading the politics regarding the white house and vaping today >> so, we've been anticipating headlines out of the white house on nicotine vape specifically.

that was very well telegraphed over the coming weeks from the fda and then the trump administration commenting last week, that there would be new news i think the market is braced for that i think that's largely been telegraphed by the nicotine vapor exposed company like ultia, greenling holdings and imperial tobacco and british american tobacco. >> the cdc news last week was sort of framed as a breakthrough on illnesses do you think it's that important? >> i think it's certainly helpful. there was clearly a lot of confusion and concern among the consumers with over 2,000 illnesses now having been reported are and -- and close to 50 deaths released since the first one in late august from ill know, and i think really the confusion for consumers was that there wasn't consensus between the cdc and fda. was it nicotine, legal nicotine, illicit nicotine, legal thc or

illicit thc and the view is it's narrowing in on vite men e acetate which would be found in illegal cannabis-based products. >> what areas are you most constructive on now and why? >> the drivers of the weakness in particular in the canadian marketplace were a function of the market developing more slowly than anticipated, but that is why we're constructive on 2020. there are just not enough brick and mortar dispensaries to displace illicit market in canada, but increasingly you're seeing provinces issue new licenses and relax some of the capsin the allowable number of dispensaries so for the canadian lps sundial is our new pick, a little bit newer to the adult marketplace, just having generated revenue in the second

quarter but they are privy and positioned and a lot of white space there and green thumb industries is our favorite idea, an illinois-based virtually integrated multi-state operator in illinois that's the going to be transitioning to adult use january 1 zanu-pf of 2020. >> when it comes to vaping, viv, where do you see opportunity right now regarding philip morris and their juul stake? i just wonder whether or not we're going to see any of these widespread ban of products in the coming months. >> so when attila reported earnings they did write down the juul investment, not perhaps to the magnitude that we've seen reported in the press from other of the private investors in juul, but that's something that we're going to have to obviously monitor. i think, you know, the hope if you're altria there are

pro-active organizations banning vaping and they will leap on their platform that got fda approval through a pre-market authorization process and launch that had in atlanta in september. >> in terms of the crackdown on counterfeit pods, be it thc or be it for nicotine, how would you expect that to play out, and what does that mean for companies that are doing things above board right now? >> so, i mean, from a enforcement standpoint that's really tricky because that really does fall under the fda's perview, at least as it relates to nicotine. it's going fog have to be more store sweeps we've actually seen the fda step some of this enforcement activity in 2019 as they endeavored to crack down on underage use sales of nicotine so more of that. on the thc side of the market, i mean, it comes down to state level enforcement, unfortunately, and that's a matter of resources. >> viv, have you been surprised

by the reaction among markets where there seem to be real long-term promise in india and china, the areas where juul thought they were really going to make their money? >> yeah. i mean, so, you know, they were in china, juul was in china for about a week before the chinese regulators had the product removed from the marketplace you know, china's been a very tough market to crack for the global tobacco companies because it's a government-controlled marketplace. that's the ultimate opportunity, but, you know, i think a lot of people are looking at the experience we've seen in the u.s. in terms of some of the illness tes and the youth vaping, and it is driving a point of caution in international jurisdictions. >> we're welcoming back meg tyrell who spoke to us just a moment ago. >> i would love to ask a question about something we spoke with dr. scott gotlieb who said juul should come off the

market completely. they have taken off the mint-flavored pod which was 70% of their sales all of this, even if there was a broad band, would potentially be until next may when it comes time for companies to approve for the license to get the products on the market do you think they can prove that there's a public health benefit to the public so they can continue selling these products? >> there's been a lot of rigorous r & d that's gone into understanding the companies of the vapor aerosol and the chemical constituents within it, and i think it's really up to the fda to help offer a framework what kind of science they are looking for specificfully and then for us on the investing side we need a bet per understanding of how the fda will really weigh the true health risks and/or benefits in terms of the chemical properties

of the products and they want to protect youth from entering the vaping category. >> i was just going to ask there's opinion some speculation in the analyst community that the crackdown on vaping could lead some former combustible cigarette users to return to smoking cigarettes have you seep any evidence of that have yet? >> we have not we've only gotten one month of nielsen data, and the improve kerri walsh-jenningsly in the cigarette volumes was de minimus despite month over month revenues for the e-cigarette categories fell 18%. as we think about the outlook that's been offered by some of the larger global tobacco companies for the u.s. market significantly, imperial tobacco reported are earnings last week and are looking for or 5%, 6% decline desa more caution view on vapers. >> that was my exact question, viv. you look at the weekly sale but

e-cigarettes harder to get now is going to mean a broad return to combustible. >> well, carl, not all e-cigarette smokers or vapors smoke. per altria's data it's about 50/50 so each for those who have smoked cigarette they have trance tran tranceitioned away. >> thanks, viv, and as well to our g metyrell. >> more from an aramco insider when "squawk on the street" returns. ♪ not much, how about you?

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tastes great! high protein. low sugar. so good! high protein. low sugar. mmmm, birthday cake! pure protein. the best combination for every fitness routine. the energy sector in correction territory and sinking again this morning coming off what was a rough week. the xle is now more than 12% off of its 52-week high. meantime, saudi aramco saying it will sell up to half a percent of its shares to individual investors in what could be the

largest initial public offering or certainly one of the largest we've seen in some time. joining us now is husseini energy founder and former executive vice president sada al husseini always good to have you with us. love to just get your take overall on anything that may have surprised you we've gotten a 600-page document outlining the plans for the taking public of aramco. anything in there that you looked at as somebody who worked for the company for quite some time know it's been a while since you were there and you looked at and thought, hmm, that's particularly interesting or unexpected >> well, good morning. no, i thought the write-up was very clear, very detailed, frankly. a lot of information by both the subscriptions and the timetable and the potential evaluations and advantages about is billion shares are being offered for individuals in the kingdom.

perhaps up to 3 billion for institutional investors. the timing is very soon. they will be accepting offers next week, the 17th, and then they will be -- institutional investors will have up to december 1 to make up their offers, and soon after that they will be announcing the allocations. i think it's december 5th, and we go live on the saudi stock market right after, that so it's a -- it's a very exciting, historical event, and we're all looking forward to it. >> the company release the earnings from are the quarter in which it took the hits from those attacks on the production facilities in september. what, if anything, do you think they need to say to reassure investors about the future and what they can do to make sure supply disruptions from a potential attack in the future don't happen again

>> yeah. i -- i did look at those numbers compared to the third quarter of 2018, we were down, but actually i think that doesn't have much to do with the attack. i think that had more tore do with the fact that the average oil prices in 2018 for that quarter were about $72 or $73 a barrel at brent, whereas now this last quarter it was closer to $61 or $62. i think that had a big effect, a lot more so than the attack which at the end of the day production was only cut by half the volume for a few days, three days it or four days, and then it was brought right back up within ten days, so i don't think that was a main factor i think it was oil prices that caused the lower income for the third quarter, but, you know, at

the same time the government has committed to paying $15 million a year in dividends for the next five years, so it's not so much the prices they have already committed to paying the dividends for five years. >> yeah. that dividend is certainly getting a lot of attention the other thing that's getting a lot of attention, sadat, is the valuation. at least according to reports there's a wide divergence in terms of expectations where aramco is going to be public prince mohammed bin salman reportedly saying the company's value is 2 trillion and bankers saying anywhere from $1.3 trillion to 1.7 trillion what's the right number and i guess what's the right level for the saudi government to move forward with this offering >> well, morgan, this is what we're trying to find out, i guess. the government wants to see what the appetite is for these shares based on the offers that they --

that they get. they will be able to back -- calculate what would be the market's estimate of the valuation, and then we'll see for sure, but i think -- i think the estimates are much closer to 2 trillion we just saw the long-term energy outlook forecast from the eia. not so long ago we saw one from exxon, and they all show a very, very strong demand for oil for two, three decades to come, and aramco is the lowest cost and it's going to be there for a long time, so population growth, economic, global growth, demand for energy, insufficient alternatives, sustainables are great but not enough all of these point to a big appetite for oil, and, you know, we'll have some institutional investors that could be sovereign funds from the far east and elsewhere, so there's going to be a strong appetite i

think for these shares. >> how likely is it that we actually see a dual listing? >> i'm sorry, i missed that question could you repeat that. >> sure. i said how likely is it that we ultimately see a dual listing? so in addition to going public andlition -- >> i'm not sure i understand. >> so in addition to going public in saudi arabia on the saudi stock exchange that we ultimately see saudi aramco offer shares somewhere else as well >> this has been talked about a lot. it's been studied. i doubt very much that it will happen within the next few months, but, you know, frankly, if you can access aramco's shares through the saudi market for at least a year, i think that will give us a much better feel for what it would look like if they did go international

i don't -- i'm not aware of any plans in the near term to do that. >> well, mr. al husseini, always appreciate you joining us, and obviously we'll be focused very closely on that upcoming potential offering for saudi aramco >> now let's send it over to sue herera for a cnbc news update at this hour. >> good morning, morgan. good morning, everyone here's what's happening at this hour a violent morning of protests during rush hour in hong kong. police shot at least one protester. at a news conference the hong kong leader carrie lam was adamant saying there would be no cop sessions in the face of violence. >> if there's still any wishful thinking that by escalating violence the hong kong government will yield to pressure to satisfy the so-called political demands, i'm making this statement clear and

loud here. the that will not happen >> protests continuing in the bolivian capital of la paz as the president resigned after nearly 14 years in power, pushed by the military and weeks of massive demonstrations blockades were visible throughout the city as fires raged overnight. back here at home, gop representative peter king has announced that he will not seek another term in 2020 the longtime republican from new york has served in congress since 1993 and he says he wants to spend more time with his family you are up to date that's the news update this hour morgan, i'll send it back downtown to you. sue, thank you. when we return, more headwinds for boeing and the 737 max jets nearly a year after their initial groundings we have the latest when "squawk on the street" returns ♪

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welcome back boeing facing more headwinds for its 737 max aircraft nearly a year after the grounding our phil lebeau joins us with the latest phil >> reporter: morgan, it's increasingly looking like the 737 max will not be flying commercial flights with people, paying customers on them, at least until late february, if not early march. if you didn't see this news late friday afternoon, friday night, southwest and american now have moved the max off of their schedule until early march haven't heard yet from united. we say that boeing is still targeting a fourth-quarter return to service. remember, they consider return to service when the faa recertifies the max. that is not what we are likely to see commercial flights because you still have to have the approval of what the process

will be for pilot training to take place, and for southwest and american they have got a number of their planes parked around the ountry, and it's no just a matter of getting the planes with the new software ready to go, but, again, it comes down to how long it will take to train the pilots with the new mcas software system take a look at shares of boeing, remember, they expect a certification flight which will happen right before the expected certification. they expect that to happen next month. also want to point out a couple of the aircraft leasing companies. look at the returns that you've seep from both fly leasing as well as air castle in the last six months in particular and that's because they are able to meet the demand that the aircraft -- that the airlines are out there with, guys, saying we need planes we have growing number of people who are looking to fly we have schedules, and we need to have that service there, so if they can't get the max they are going to air castle and fly leasing and saying what have you got and we need them guys, back to you. >> yeah, we saw last week, phil,

ge's g-cas unit ordering 25 airbus jets which got some attention, too. >> yeah. >> crazy question for you, and i realize that this sort of -- this depends on the airlines this depends on countries, et cetera, but in the midst of everything that we're seeing play out with the 737 max, could we see some sort of more standardized global i guess kind of outline for how pilots are going to be trained from here on out? >> no, no. i think you'll see greater scrutiny, but i think you'll continue to see every country or region set their own standards when it comes to pilot training are. now historically, the rest rast world has followed the lead of the faa, and the faa would like to continue to have that cache, you will, in other words, you guys are the gold standard, we'll follow you, but everything that has happened with the max has called that into question. i don't think that you're going to see one standard, morgan. if anything, will you start to see other regions around the world saying we need to have

greater emphasis on pilot training just because there's so much demand and pilots younger and younger are coming into the commercial fleets. >> well said, phil thank you. we'll watch that our phil lebeau talking boeing meanwhile jamie dimon defending executive pay. here's what he said on "60 minutes. executive pay. last year you were paid $31 million. too high >> the board sets mine i have nothing to do with it. >> you could return some of it >> i could, it's not going to solve any of those problems. i'll leave it to the board to solve my comp. >> you've answered every one of my questions, but this one you're falling off. >> the board has to do it. >> let me ask it in a general way. should executive pay in this country be curbed? >> what does that mean >> cut back? should there be a way to say we'll not going to have such a

spread between our workers a the guy at top >> when you say something like that you have to say how are you going to do, what makes sense. you use the tax system to do that would i not have cut the tax on rich i would raised the earned income tax. >> we talked last hour jim's point is the he had should have said i've made a lot will have money because i made people a lot of money you can't say that about a lot of other ceos who lost market cap and haven't made people money. >> it's a reasonable point but that doesn't mean there should be what is reasonable compensation versus successive you can say everyone has benefitted from my long leadership at this the company and in the case of mr. dimon that's true. perhaps he has better defenses than those who would claim it's simply too much. it's not just the banking industry we talked about our own industry

where ceo comp is often high what's incorporated is an equity component that can move up and down as well based on the performance of the company as well. >> and more broadly speaking this is a discussion gaining momentum for quite some time and has been thrust into the political spotlight more recently as well, you know, as we move further into this 2020 election cycle i would also just point people back to wilfried frost's conversation where indiana equality also elicited some interesting dialogue. >> agreed. >> check out wilf's interview. >> the he talked to him at length about the roundtable discussion as well we don't need "60 minutes." > coming up, apple's credit

card under investigation we'll tell you why next. we started a non-profit community bank with a simple theory - give people a fair deal and real economic power. invest in the community, in businesses owned by women and people of color, in affordable housing. the difference between words and actions matters. that's a lesson politicians in washington could use right now. i'm tom steyer, and i approve this message. by the way, she's the it wasnext mozart.g day. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places.

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♪ apple's newly launched apple card program is being accused of gender discrimination. josh lipton joins us now with more details from san francisco. josh >> reporter: so, morgan, ceo tim cook is bullish on the apple card he have's not detailing initial signup numbers, but on his company's last earnings call, remember, he called it the most successful launch of a credit card in this country ever, but now that card is attracting up wanted attention with a new york regulator investigating goldman sachs for possible gender discrimination when

determination credit card limits, that's after a tech entrepreneur named david hanson condemned the card on twitter for providing him with a credit limit that's 20 times higher than his wife, even though he says the couple files joint tax returns and that his wife has had a higher credit score. he did not disclose their respective income information. his tweet though gained traction online, even receiving a comment from apple co-founder steve wozniak saying apple gave him ten times the credit limit that he got he said we look at credit worthiness, including personal credit scores and how much personal debt you have and how that debt has been managed based on these individual factors, it's possible for two family members to receive significant different credit decisions we have not and will not make decisions based on factors like gender apple card won't have a big impact it for the iphone-maker

it's part of the broader apple experience and keeps existing apple fans happy, loyal and engaged deferring to other cards. >> how do you see this being expanded out -- it's currently focused on individuals could you see it actually expand out to be more of a family card as well? >> we'll see where they take it, but that's sort of the issue here, morgan, you know they don't support joint accounts you know, individual credit histories obviously matter and they can be matter i may have 20 years of credit history and maybe my wife has something very different, five or ten and that would mean very different credit limits and we'll see what the reaction is after this story >> all right joint. that was the word i was looking for. josh lipton, thank you and we want to mention coming up on "squawk alley" we'll speak with the new york department of financial services superintendent who is spearheading the investigation

into the apple card. as we go to break, take a look at the markets, dow down 103 and s&p down 10 kimang it so far the worst day in the month of november. back in a moment - at southern new hampshire university, we believe in education built for all people. - [woman] snhu was the best experience of my life. - [man] without snhu, i wouldn't be the leader i am today. - [woman] i graduated high school 19 years ago. i still finished. - [man] in the military, you feel that sense of accomplishment. that's what snhu is.

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welcome back to "squawk on the street." i am dominic chu we're seeing broader declines across all sectors we are near highs of the session now. let's drill down on one of the sectors that's underperforming so far today, consumer discretionary stocks that sector traded just about flat in the past month, still on track, down 4% from recent highs in the summer. casino stocks are pushing that group lower after analysts projected november gaining revenues, and fell between 8 and 12%. that would be the sharpest monthly drop for the casino stocks we'll keep an eye on those gamers back downtown to you guys at the new york stock exchange. >> thank you, dom chu. new york's biggest art auction sale is kicking off today, expecting the biggest sales drop in what would be more than a decade. robert frank joins us with more. robert >> good morning, david more than 2,000 works and a

billion dollars of art for auction this week. the total expected to be down 20% from last year that's the biggest drop since the financial crisis the real trouble is at the top of the market, paintings that sell for 8 or 9 figures. two years ago we had the leonardo da vin chee sold for 450 million. this year, star lot is estimated to sell less than half that. 30 to 40 million for ed ruscha up for auction christy's has one that could fetch 45 million sotheby's has a de kooning, estimated to sell 25 to 35 million. art experts blame weakness on

sellers that don't want to let go of major works at these prices, also slowing growth overseas, trouble in hong kong, brexit, political noise in the u.s. and removal of a tax loophole, 1031 exchanges that allowed collectors to sell paintings and trade up without paying capital gains taxes that loophole is gone so they have to pay the tax when they sell over the longer term, art is still performing okay. they have another blue over red that hammered for 5.6 million in 2005 estimated to sell this week for over 25 million. pretty good return for that. sales start today and run through friday guys, back to you. >> if elizabeth warren has a wealth tax, are they basing it on the last sales of the art collection >> doing unrealized captain gains for art will be tricky

with an illiquid market. some of that rhetoric is going to dampen the confidence of people holding up a paddle, bidding 30, $40 million for a piece of art, coupled with of course mainly economic anxieties overseas >> robert, you touched on it, how does this speak to the breakdown of money, where the demand is coming from in terms of u.s. versus foreign >> i am told chinese buyers, for instance, they're still in the market, russian buyers not in the market any more. chinese buyers are still there but not at the levels we saw where they were bidding over $100 million, which we saw a couple years ago they're there but at much lower levels it is a global market, just not that strong at the top people are not willing to pay the $100 million or $50 million plus prices any more like they

did two years ago or even last year >> inflation on that is stunning, robert what a story robert frank when we come back, back to the world's largest online shopping event alibaba's singles day comes to a close. "squawk alley" starts in three minutes.

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good morning it is just seconds away from midnight at alibaba headquarters in china, nearly 11:00 a.m. on wall street. "squawk alley" is live ♪ ♪ ♪ good monday morning. welcome to "squawk alley." i am carl quintanilla with morgan brennan at post nine of

the new york stock exchange. the world's largest 24 hour shopping event, alibaba singles day coming to a close. >> reporter: that's right, carl, just closing out at a figure of 268.4, mark the record from last year 31.8 that number is ticking up, more and more chinese consumers continue to purchase things via alibaba sites. a lot of it driven through imported goods, showing a lot of love for american brands as well the u.s. one of the top countries wher